Titan reports dip in profit, but investors have reason to keep the faith

Despite a miss on margins for the Titan Company in the September quarter, investors are not complaining. The jewellery retailer had declared its results for the quarter after market hours on Friday; on Monday, its share price jumped a little over five per cent. Pushed by robust revenue growth in that quarter and, more importantly, a strong outlook for the second half of the current financial year.The reason the Street is not too worried about its lower profit is the strong performance on sales, in an environment where a number of other consumer goods companies are struggling to drive volumes. In the September quarter, Titan's jewellery segment (80 per cent of its revenue) grew 28.5 per cent (wholesale) over the year-ago period. At the retail level, the company indicated, growth was even stronger at 38 per cent. Sharp outperformance, as other larger jewellery retailers are expected to have grown at about 15 per cent. The higher growth in jewellery was on account of continued momentum ..

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